Indorama Ventures Public Company Limited, a global chemical producer headquartered in Thailand, has announced that it has entered into an agreement to acquire Sorepla Industrie S.A., a plastics recycling facility in France.

According to the information, Sorepla Industrie is one of the largest recyclers in Europe. The facility consists of three production lines: Recycled Polyethylene Terephthalate (rPET), Recycled High-Density Polyethylene (rHDPE) and food-grade Pellets, with a combined capacity of 52,000 tons per year. “Regardless of the fluctuations in the quality of post-consumer feedstock, Sorepla can offer consistently high quality recycled PET material that meets customers’ specific needs in packaging and fibers,” the new owner is convinced.

This acquisition would be strategically in line with Indorama Ventures’ objectives of long-term sustainability, the Thai company said. The addition of Sorepla would further solidify its position “as one of the leaders in recycling in Europe and opens up new opportunities to serve increasing demand for food-grade rPET”. While the company has a recycling presence in France through its subsidiary, Wellman France Recyclage in Verdun, “the acquisition of Sorepla gives the company additional capabilities to deliver food-grade rPET to serve increasing demand among major brand owners for more sustainable packaging solutions”. Due to Sorepla’s proximity, synergies of management and supply chain are expected to benefit the businesses.

rPET resin is widely used for food and beverage packaging as well as fiber applications in Europe. The demand for food-grade rPET in Western Europe is expected to grow at a compound annual growth rate (CAGR) of seven percent from 2018-2021; currently, it is outstripping supply. “A growing emphasis on sustainability and circular economy objectives among packaging and consumer product manufacturers is expected to be amongst the key factors driving market growth,” the Thai chemical producer. “Recycled PET is well-known to be hygienic and is approved for food-contact applications in most countries around the world.”